- A 2019 IoT Analytics forecast projected IIoT platforms for manufacturing software and services would exceed $12.4B in 2024 (~40% CAGR from 2019).
- Newer estimates place the broader IIoT platform market at ~$11–12B in 2024 and ~$20–23B by 2029–2030, with forecast gaps largely driven by differing market definitions and scope.
- Discrete manufacturing remains the largest spending vertical, propelled by automation, digital twins, predictive maintenance, and quality/throughput pressures.
- Strategy centers on platforms that deliver edge+AI analytics and enable OEM service monetization (e.g., EaaS) while overcoming legacy integration, standards, cybersecurity, and trade/tariff constraints.
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The original 2019 IoT Analytics report projected that “Industrial IoT Platforms for Manufacturing”—encompassing software & services for connected manufacturing—would surpass USD 12.4 billion in annual spending by 2024, growing at ~40% per year from 2019. That prediction was anchored in adoption among manufacturers facing pressures for agility, customization, and reduced lifecycle durations, with discrete manufacturing expected to lead.
However, more recent market data suggests a more modest scale for IIoT Platform-specific revenue in 2024. Reports from ResearchAndMarkets and The Business Research Company put the global IIoT Platform market at ~USD 11–12 billion in 2024, with expected growth to USD 20.5–23.5 billion by 2029–2030. Another source, GlobalGrowthInsights, estimates much higher—USD 83.1 billion for 2024—although this likely includes adjacent components or broader IIoT definitions beyond platforms per se.
The divergence among forecasts stems from differences in scope: whether “platform revenue” includes associated services, hardware, connectivity; and whether the data is limited to manufacturing verticals versus all IIoT sectors. The 2019 forecast was specific to software & services used in manufacturing, while recent estimates sometimes conflate platform tools with full IIoT ecosystems or measure total IIoT market rather than platforms.
Discrete manufacturing—automotive, machinery, electronics—remains a consistent leader in IIoT platform adoption, due to its demands for customization, high asset utilization, and quality control. The 2019 report singled this out, and the most recent sources confirm discrete manufacturing represents the largest vertical share for IIoT platform spend.
The 2019 report foresaw OEMs beginning to monetize software and even exploring Equipment-as-a-Service (EaaS) models using IIoT platforms; recent forecasts emphasize digital twin, edge computing, AI/ML, and sustainability as major growth drivers. Challenges identified earlier—standardization, legacy integration, adoption barriers—are still cited today, along with newer pressures: tariffs, cybersecurity, workforce skills.
Strategic implications are clear: vendors and investors in the IIoT platform space should focus on delivering high discrete-manufacturing value propositions; platform offerings must include analytics, edge, and service models; go-to-market should address industry-specific barriers; and markets in Asia (especially APAC) represent high growth potential due to manufacturing shift and supportive policies. Open questions remain around which subsegments of manufacturing will command majority spend, how widely EaaS will be adopted, and whether older predictions like 40% CAGR are realistic given broader macro-economic headwinds.
Supporting Notes
- IoT Analytics projected in 2019 that annual spending on Industrial IoT Platforms-related software and services in manufacturing would grow at ~40% annually and exceed USD 12.4 billion by 2024, with discrete manufacturing identified as the #1 area for spending.
- Recent reports from ResearchAndMarkets, The Business Research Company, and others estimate the IIoT Platform market in 2024 at approximately USD 11.08 to USD 12.06 billion, with growth to around USD 20.5-23.5 billion by 2029-2030.
- Another source (GlobalGrowthInsights) puts the global IIoT Platform market size much higher—USD 83.08 billion in 2024, rising to USD 132.24 billion by 2033—but this likely reflects broader inclusion of non-platform elements or full IIoT definitions.
- Mordor Intelligence reports that discrete manufacturing will hold approximately 36.5% of revenue share in 2025 among verticals, reinforcing its leading position.
- The 2019 report noted that several OEMs are beginning to monetize software and explore equipment-as-a-service models via IIoT platforms, but expected that EaaS would not yet be dominant by 2024.
- Recent forecast drivers cited include digital twin implementation, environmental sustainability focus, real-time quality control, and AI/ML integration as major growth factors in IIoT platform market.
- Persistent barriers include lack of standardization, integration complexity especially with legacy OT/IT systems, skills gaps, and regional trade/tariff impacts.